BATON ROUGE — After weeks of holiday cheer, you might find yourself dealing with the dreaded post-Christmas credit card hangover. While 2024 proved financially challenging for many, nearly 90% of Americans still planned to shop for the holidays. According to a Gallup survey, Americans expected to spend an average of $1,012 on gifts in 2024, up from $975 in 2023.
If you find yourself in the red, the first thing to do is stay calm. Here are some practical steps to get your finances back on track, courtesy of Neighbors Federal Credit Union.
1. Assess the Damage
Start by calculating how much you overspent. Did your savings take a hit? If so, determine how long it will take to replenish your funds. If you accumulated new debt, figure out how long it will take to pay it off—and don’t forget to account for interest.
2. Consider Credit Card Transfer Options
If you’ve racked up significant credit card debt, look for balance transfer offers with 0% interest rates.
“It buys you time to pay down the principal amount without accruing additional double-digit interest,” NFCU financial welness director Kim Chapman advises.
3. Go on a ‘No-Spend Diet’
Reduce your spending to essentials only for a period. Cancel non-essential subscriptions or streaming services, and cut back on dining out and other extras.
“Do without eating out all the time and some of the extra stuff,” Chapman said. “There’s always time to put away a little bit money.”
4. Plan Ahead for Next Year
Chapman emphasizes the importance of budgeting early (even for Christmas 2025).
“Christmas shouldn’t surprise us,” she notes. Opening a Christmas Club account now can help you save gradually throughout the year, ensuring you’re financially prepared for next December.
5. Don’t Be Afraid to Ask for Help
If you’re overwhelmed, seek assistance sooner rather than later. Neighbors Federal Credit Union offers financial counseling to help you develop a customized blueprint for financial success.
“Don’t wait until you’re delinquent. Don’t wait until the bill collectors are calling,” Chapman warns. “Get that plan put together so that you can salvage your credit score and figure out a plan so that you can start saving now for next year.
Neighbors Federal Credit Union offers financial counseling to help you develop a customized blueprint for financial success. “Come out to Neighbors, and come see one of our financial counselors. Let us help you to figure out that blueprint for financial success!”
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